%T Relatedness, complexity and local growth
%A Benjamin Davies
%A David Maré


%I Motu Economic and Public Policy Research
%D 2019

%K Economic indicators, %K Economic development, %K Cities and towns, %K Regional economics, %K Regional disparities



%U https://apo.org.au/node/224176

%X We derive a measure of the relatedness between economic activities based on weighted correlations of local employment shares, and use this measure to estimate city and activity complexity. Our approach extends discrete measures used in previous studies by recognising the extent of activities' local over-representation and by adjusting for differences in signal quality between geographic areas with different sizes. We examine the contribution of relatedness and complexity to urban employment growth, using 1981–2013 census data from New Zealand.
%9 Working paper